1. Housing Finance Conference March 16 th 2006

2. 1 Table of Contents I. Banco Hipotecario’s Overview II. The Crisis and its Impact on the Bank III. Securitization Programs IV. Outlook

3. 2 Banco Hipotecario at a glance Argentina’s leading mortgage lender (assets of US$ 2.6bn as of December 2005) and largest servicer and provider of mortgage insurance Nationwide network of 25 branches, 3 sales offices and 977 employees The Bank has reported the system highest earnings for the last three years: Ps. 255,2 million in 2003, Ps. 279,1 million in 2004 and Ps. 253,3 million in 2005 “Best Bank of the Year Argentina 2004” LatinFinance First domestic Argentine financial institution to successfully restructure its foreign currency debt Ranks as the second Argentine bank in terms of shareholders’ equity and seventh in terms of assets (October 2005) First domestic bank to obtain foreign financing since the Argentine crisis and to securitize its mortgage portfolio (five series for US$ 100 million) Sound financial position as a consequence of a balanced, capitalized and profitable asset & liability structure

4. 3 A Bit of History Established in 1886 as a government –owned bank. Historically engaged in three principal business activities: lending to individuals and developers for the purchase, construction and improvement of housing units; underwriting credit life, property damage and unemployment insurance related to our mortgage lending activities; and servicing our own and third-party mortgage loan portfolios. Financed its lending operations mainly through: Issuance of fixed and floating rate securities in the international markets; Central Bank advances; Securitizations of mortgage loans; Other financing arrangements with international and domestic financial institution; Cash flow from existing loans; Deposits.

5. 4 Impact of the Crisis Increase Exposure to Argentine Credit Deterioration of Loan Portfolio Deterioration of Loan Portfolio Currency/ Interest Rate/ Maturity Mismatch Mismatch LiquidityCrisisLiquidityCrisis  USD 670 million maturing in the short term, with no access to the capital markets or any other financing sources  Asymmetric pesification of assets and liabilities  Foreign exchange gap from non-pesification of cross-border liabilities  Asymmetric indexation of pesified assets and liabilities  Compensatory Bodens provide only partial compensation  Compensatory Bonds mitigate the effects of the pesification, but subject the Bank to Argentine government risk  Predominately middle-market mortgage portfolio, highly sensitive to the economic crisis  Cap on interest rates charged on mortgages  Impairment of the Bank’s ability to foreclose  Suspension of mortgage origination The 2001 Argentine economic crisis precipitated a series of events and consequences from which the country is gradually emerging

6. 5 Tactics Fund loan portfolio growth via: Corporate bonds and notes Loan Securitizations Limited reliance upon deposits, interbank loans No need for additional equity capital Strategy Balanced structure of assets and liabilities Diversified markets Diversified instruments Banco Hipotecario’s Funding Strategy Argentine and US investors, Euromarkets Securitizations, bonds, bank facilities Matching currency, maturities and interest rates

7. 6  Access to more convenient rates  Broader investor base  Match interest rate and maturities  Improve the operating efficiency  Broader regulatory limits Securitization Advantages

8. 7 Pre –Crisis Securitization Programs In 1996, 1997, 2000 and 2001 we established five separate mortgage trusts under our off –balance sheet US dollar -denominated securitization program. For each mortgage trust we transferred a portfolio of mortgages originated by banks and other financial institutions in trust to the trustee for the relevant trust. The trustee then issued senior bonds, subordinated bonds and certificates of participation denominated in dollars The trust’s payment obligations of these instruments were secured by, and recourse was limited to, the trust assets consisting of the portfolio of individual residential mortgage loans and any reserve fund established by the bank for such purpose. The mortgages conveyed to the trusts were no longer recorded as assets of the Bank BHN IV was the first MBS transaction to utilize political risk insurance and obtained the highest rating (A+) assigned to a cross border bond supported by Argentine assets Senior bonds were internationally rated “investment grade” and allocated to US institutional investors On March 30, 2000, the Central Bank approved the incorporation of a new entity currently called BACS –Banco de Crédito y Securitización SA, with Banco Hipotecario, IRSA and IFC as shareholders. The purpose of this financial institution is to promote the development of a secondary mortgage market in Argentina. BACS acted as the dealer manager for the fifth mortgage trust mentioned above.

9. 8 Investment grade rating 7%/ 8% funding unequalled by Argentine banks for 5 year average life Expected to fund 50% of new origination Pre –Crisis Securitization Bonds 93105107 Nov. 96Oct. 97May 97 7.23%6.94%7.14% 185 bps159 bps150 bps Date Amount (US$m) Rate Spread over UST 195 Mar. 00 8.00% 400 bps 115 Feb. 01 8.00% 425 bps BHN I BHN II BHN III BHN IV BACS I Program success a function of: lscale which competitors lack lrigorous origination norms lefficient loan administration BBBBBB- A+ Rating Int.

10. 9 Post –Crisis Securitization Programs In 2004 and 2005 we established five separate mortgage trusts under a new off –balance sheet peso –denominated securitization program called “Cédulas Hipotecarias Argentinas” For each mortgage trust we transferred to a trustee a portfolio of our post 1991 peso – converted loans and new loans originated after the crisis The trustee issued senior bonds (known as “Cedulas Hipotecarias”), subordinated bonds and certificates of participation denominated in pesos The payment obligations of these instruments were secured by the trust assets consisting of the portfolio of individual residential mortgage loans and any reserve fund established for such purpose Cedulas Hipotecarias Series II to V pay a floating rate of interest linked to CPI The portfolio of fixed rates allows senior bonds to pay floating rates up to defined ceilings (around 15% /16%) under the current subordination schemes The Cedulas Hipotecarias were locally rated “investment grade” and allocated to Argentine institutional and retail investors The Bank acted as the principal dealer of the Series with the participation of other local banks as co –dealers. The Bank acts as market maker and provides liquidity for the different issues.

11. 10 Local investment grade rating Local funding in pesos for 2.5 year average life Bonds pay floating rates linked to CPI Post –Crisis Securitization Bonds 506250 Jun. 04Apr. 05Nov. 04 8.00%13.00%9.68% n.a.100 bps300 bps Date Amount (AR$m) Rating Local Spread over CPI 65 Jun. 05 8.00% 100 bps 65 Oct. 05 9.00% 100 bps CHA I CHA II CHA III CHA IV CHA V Program success a function of: linnovative structure lbroad local investor base lefficient loan administration raAAAraAA Rate raAA+ raAAA

12. 11 The bonds were extensively oversubscribed Allocation of the Series (accumulated) Post –Crisis Securitization Bonds

13. 12 Outlook An expansion of the local mortgage market should be expected Mortgage debt-to-GDP ratios show a significant room to growth CHILE Debt- to- GDP USA Debt- to- GDP ARGENTINA Debt- to- GDP

14. 13 Outlook Recent economic indicators reinforce the view of the potential for growth for the mortgage sector _ Current low construction costs _ Increasing construction activity _ Recovery of salaries Construction Cost Index Base 1993 Construction Activity Yearly Growth Yearly Growth Private Salaries Base 1993 +30% 2,00% 5,00% 8,00% 11,00% 14,00% 17,00% 20,00% 23,00% 26,00% 29,00% 32,00% 35,00% 38,00% Jun-03 Sep-03 Dic-03 Mar-04Jun-04 Sep-04 Dic-04 Mar-05Jun-05 Sep-05 30,00 40,00 50,00 60,00 70,00 80,00 90,00 100,00 110,00 Mar-91 Dic-91 Sep-92 Jun-93 Mar-94 Dic-94 Sep-95 Jun-96 Mar-97 Dic-97 Sep-98 Jun-99 Mar-00 Dic-00 Sep-01 Jun-02 Mar-03 Dic-03 Sep-04 Jun-05 -34%

15. 14 Outlook Last years have shown an steady improvement in mortgage loans Banco Hipotecario reaffirms its leadership originating one out of three mortgage loans granted in Argentina Mortgage Monthly Origination In million of AR$